Informing the Legislature that on May 15, 2025, the Governor signed the following bill into law: SB1359 HD2 (ACT 054).

This bill changes how the annual contribution rate is calculated for the Hawaii Employer-Union Health Benefits Trust Fund. Starting January 1, 2026, the base monthly contribution will initially increase by 5.2% from the 2025 level, and subsequent annual adjustments will be tied to the percentage change in the federal Medicare Part B premium rate. The Medicare Part B rate is set annually by the U.S. government and published in the Federal Register. This directly affects the funding level for health benefits provided to employees covered by employer-union agreements in Hawaii through this trust fund.